Home Cryptocurrency Fund management firm Global X files with SEC for Bitcoin ETF

Fund management firm Global X files with SEC for Bitcoin ETF

by Gordon James

On Tuesday, Global X, a fund management firm based in New York filed to list its Bitcoin ETF with the SEC for approval. The “Global X Bitcoin ETF” would be the first ETF to track the cryptocurrency Bitcoin…

Bitcoin ETFs are something of a holy grail in the world of cryptocurrency. This is because they would allow investors to easily invest in digital currency through a regulated investment vehicle. In July of this year, a large fund manager suggested that such a product could be approved within the next three months.

On March 2, 2018, the Securities and Exchange Commission (SEC) said that it would not approve the ETF request that the firm Global X had filed for. The decision was made after the SEC reportedly reviewed the company’s financial statements and found some issues.. Read more about sec crypto and let us know what you think.

 

Global X Digital Assets, based in New York, has submitted an application with the US Securities and Exchange Commission for a Bitcoin (BTC) exchange-traded fund (ETF). 

The application, which was filed on July 21, suggests that the planned Global X Bitcoin Trust — a Delaware statutory trust established in mid-July this year – will trade on the Cboe BZX market if authorized. The trust’s administrator would be the Bank of New York Mellon. According to the paperwork:

“The Trust’s investment goal is to reflect the performance of bitcoin’s price minus the Trust’s operating costs. The Trust will not attempt to replicate any benchmark or index’s performance.”

The trust would send Bitcoin to investors or their approved financial agents via an unidentified BTC custodian. The custodian is a limited purpose trust corporation approved by the New York State Department of Financial Services to offer digital asset custody services, according to Global X. The trust “will not buy or, absent a liquidation or exceptional circumstances specified below, sell bitcoin directly,” according to the petition.

The trust’s sponsor, Global X Digital Assets, is linked to Global X Management Company, commonly known as Global X, and Mirae Asset Global Investments. The latter, headquartered in Seoul, South Korea, manages assets valued at more than $560 billion as of March 2021.

Grayscale’s CEO said the company is “100% committed” to converting GBTC become a Bitcoin ETF.

The large amount of Bitcoin ETF applications in the United States early this year, according to Greg King, CEO of Osprey Funds, contributed to Bitcoin’s remarkable 2021 bull run. 

The SEC’s continued reluctance to approve a crypto ETF, along with hawkish regulatory statements in the United States about different crypto assets such as stablecoins, has had a part in the coin’s subsequent price drop, according to King. The earliest a US regulator would accept a BTC ETF proposal, according to King, would be 2022.

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